International trade accounts for 54% of India’s GDP. It is the 9th largest commercial importer. The sectors that attract foreign direct investments are listed below:
- Financial services
- Computer and information services
India’s economic growth
Through India’s central government’s recent reforms such as GST, Land Acquisition, Smart Cities, Digital India and Make in India, the country has seen a positive economic growth. Today, India is a fast growing global economy. In the next eight years, India is expected to experience an average annual growth rate of 7.2 percent, according to a recent Harvard study.
India’s economic figures and business parameters (as of 2016)
|GDP (billion USD)||2,263|
|GDP per capita (USD)||1,709|
|GDP per capita PPP (USD)||6,572|
|Purchasing power per dollar, compared to the USA||176%|
|Surface area (sq km)||93,030|
|% of population living in urban areas||71%|
|% of GDP added by agriculture - industry - services||-|
|Ease of doing business index (1 = best, 180 = lowest)||54|
Business opportunities in India
Below are the potential growth sectors in India:
- Information technology
- Real estate
- Retail industry
- Tourism services
Over the last few years, India has been an outsourcing destination for various organizations. But this scenario is changing rapidly, and trade in services and goods is quickly improving. Cultural barriers along with government barriers are the issues one has to tackle to grow a business here.
Manufacturing sector in India
17 per cent of India’s GDP is represented by its manufacturing sector, in contrast to the 53 per cent of the services sector. Lack of infrastructure and connectivity is seen the reason for the investment shift into more asset-light services sector.
Make in India is a national campaign that promotes manufacturing growth for both domestic and international products. The campaign aims to foster innovation, facilitate investment, enhance skill development, protect intellectual property, and build top-of-the line manufacturing infrastructure.
'Make in India' initiative
The Indian government recently launched the ‘Make in India’ initiative to foster innovation, build top class manufacturing, secure intellectual property, facilitate investment and enhance skill development. This initiative spans across all the budding sectors of Automobiles, Automobile components, Aviation, Biotechnology, Chemicals, Construction, Defence Manufacturing, Electrical machinery, Electrical systems, Food Processing, ITM and BPM, Leather, Media & Entertainment, Mining, Oil & Gas, Pharmaceuticals, Ports & Shipping, Railways, Renewable energy, Roads & Highways, Space, Textiles & Garments, Thermal power, Tourism & Hospitality and Wellness.
Digital sector in India
IT is one of India’s strengths. In view of this PM Modi has also launched digital India. The initiative aims to tap India’s IT capabilities and to promote investments into IT and mobile infrastructure.
With both hardware and software coverage, India aims to achieve the following:
- Improvement of electronic infrastructure including fibre optic cables, mobile coverage, and broadband coverage;
- Promotion of electronics marketing;
- Promotion of more e-governance solutions by various government authorities to address business and civilian needs.
Mobile, IT, and electronics in India
There is an increasing demand for mobile handsets and electronics; this will in turn create opportunities for brand owners and trading companies to supply and see growth together with the market. Indian market also provides opportunities for software companies that provide expert solutions for mobile and e-governance. In order to effectively ride on the trend, investing companies must tailor their products and suite of applications and products for the Indian market.
Public and private sector opportunities in India
The public sector of India provides opportunities for e-governance tenders from state entities, educational institutions and judiciary institutions. These projects in the public domain will enhance your company’s track record and develop local expertise.
On the other hand, the private sector provides more varied digital solutions, which range from hospital management systems, power management systems, payment solutions, e-learning modules, and e-commerce related services among others.
There’s always a better for you to significantly increase your success potential in India’s market. Our team of competent specialists at Alliance experts will give you advice on how to boost the marketability of your product or service.
Political structure of India
Three levels of Indian government include legislature, executive, and judiciary. All three have interconnected responsibilities including making the law, passing the law and solving conflicts among public respectively.
The President of India is elected by an electoral college comprising members of both houses of Parliament and state legislatures. There is no limit on the number of terms, each term lasts 5 year. The Vice President of India is also indirectly elected in the same manner as the President.
The Prime Minister of India is elected by parliamentary members of the majority party after the legislative elections. The Union Council of Ministers is always selected by the prime minister however appointed by the President.
What are India’s important events?
- Elections are important events in such a large democratic country. The assembly state election in 2015 was held in February. In 2014, 550 million people participated in the election, in which Narendra Modi was chosen to be the new prime minister. Having a business-friendly leader makes a significant impact on India’s business landscape. Festivals in India are celebrated throughout the year. Main festivals like Diwali, Holi, Eid, and Christmas are celebrated in November, March, July, and December respectively.
- Many trade fairs and events are held by private as well as public authorities. The Trade fair in Delhi is an annual event to look forward to. From Aviation Summit to Beauty and wellness many trade events are on charts in 2015.
- Popular sports are cricket and football, hockey and tennis.
India's Important Holidays
- Republic Day of India is celebrated on every 26 January for adoption of the Constitution of India in 1950
- Independence Day of India is celebrated every 15 August as India got , Independence from the British Empire on 15 August, 1947
- Gandhi Jayanthi is celebrated every October 2 as Mahatma Gandhi's birth anniversary
- Ram Nawami, a Hindu festival, celebrating the birth of the god Rama is celebrated every March 28
- Diwali is the biggest festival in India